Markets kicked off the week on a positive trajectory, with the Sensex climbing over 430 points and the Nifty Index surpassing the 24,850 threshold. As investors eagerly await critical inflation indicators from both the U.S. and India, the Sensex was recorded at approximately 81,150, reflecting a rise of more than 0.53%. The Nifty 50 also saw an increase of over 100 points.
The uplift in global stock futures, particularly within U.S. markets, has contributed to this bullish sentiment. Investors are gearing up for significant inflation reports this week, with the Producer Price Index (PPI) set for release on Wednesday and the Consumer Price Index (CPI) scheduled for Thursday. Following a disappointing jobs report last Friday, which revealed only 22,000 new job additions—far below the anticipated 75,000—expectations for a potential interest rate cut by the Federal Reserve have increased.
Global market indicators remained positive, as both Asian and European markets also exhibited upward movements. By 2:55 PM IST, the market snapshot was as follows:
- Sensex: 81,150 (+0.53%)
- Nifty 50: 24,850 (+0.44%)
- Bank Nifty: 54,334.60 (+0.41%)
- Nifty Midcap 100: 57,459.25 (+0.67%)
- Nifty Smallcap 100: 17,702.30 (+0.27%)
Sector performance revealed several key gainers. In the automotive sector, Tata Motors, Mahindra & Mahindra, and Bajaj Auto experienced notable rises due to vehicle price reductions and GST relief measures. Within the metals sector, stocks such as Tata Steel, SAIL, and JSW Steel appreciated following favorable analyst upgrades. The public sector banking space saw increases led by SBI and Canara Bank.
Conversely, the IT sector faced challenges, with companies like TCS, Tech Mahindra, and Infosys experiencing declines attributed to ongoing global macroeconomic pressures. The FMCG and real estate sectors also witnessed minor profit-booking after recent gains.
A closer look at key stock movements revealed:
- Tata Motors: +3.67% due to announced vehicle price cuts.
- JSW Steel: +2.67%, driven by an improved outlook on domestic demand.
- Vedanta: +5.00%, thanks to winning a bid for JP Associates.
- Prime Focus: +10.00% following insider purchases by significant investors.
On the international front, U.S. futures were up modestly, with the Nasdaq gaining 0.35%, the S&P 500 increasing by 0.23%, and the Dow rising by 0.21%. In Asia-Pacific markets, the Nikkei advanced by 1.45%, the Shanghai Composite rose 0.38%, and the Hang Seng jumped by 0.85%. In Europe, markets opened higher despite ongoing political uncertainty in France.
In commodities, gold was slightly down at $3,648 per ounce, while WTI crude oil prices trended higher at $62.78 per barrel. The U.S. 10-Year Treasury yield was recorded at 4.08%, showing a slight decrease.
Analyst insights suggest a keen focus on the upcoming CPI and PPI data. “If inflation cools further, expect the Fed to not only cut rates but signal more cuts ahead — and that could fuel the next leg of this rally,” stated Chen Zhao, Head of Economics at Redfin.
Looking forward, key dates to note include September 10 for the U.S. PPI release, September 11 for the U.S. CPI release, and September 17 for the Federal Reserve’s interest rate decision, alongside earnings reports from companies such as Adobe, Chewy, and Synopsys.
